Crypto News: India Union Budget 2026 Raises Crypto Trading Jail Risk

Key Insights

• Crypto news shows India kept the 30% tax and 1% TDS without any relief.
• New rules from April 2026 bring ₹200 daily fines and ₹50,000 penalties.
• Exchanges must share user trade data with tax authorities.

India’s latest budget did not bring any relief for crypto users. There was no tax cut, as revealed in today’s crypto news bit.

There was no softening of rules. Instead, the focus stayed on tracking trades and punishing mistakes.

Crypto is legal, but it will be watched closely. This is how India is shaping its crypto system going forward.

Crypto News India: Taxes Remain Unchanged

For months, traders hoped the government would rethink crypto taxes. Many expected some reduction. However, the latest India crypto news showed that it did not happen.

The 30% tax on profits is still in place. It does not matter if you trade Bitcoin, Ethereum, or smaller tokens. If you make money, 30% goes to tax.

The 1% TDS also stays. Every time you trade, 1% is deducted first. Even if you later make a loss, that money is already gone.

Meanwhile, the crypto news also showed that the loss rules have not changed either. If any user loses money in crypto, they cannot adjust it against other income. However, the users cannot carry it forward.

Because of this, many small traders struggle. Repeated TDS cuts slowly reduce their capital. Some people trade less. Others move to foreign platforms. Some quit completely.

From the government’s side, the view is clear. Crypto is still seen as risky. So the tax system stays strict.

Crypto News: Indian Reporting Rules Are Getting Tougher

While taxes stayed the same in the crypto news, reporting rules became stronger. From April 1, 2026, crypto platforms must follow Section 509 fully.

This rule forces them to share user transaction data with tax authorities. If a report is late, the fine is ₹200 per day. This keeps adding up until it is submitted.

If the information is wrong, the crypto news showed that the penalty can reach ₹50,000. Here is what Indian Finance Minister Nirmala Sitharaman said exactly in the budget meeting:

“To ensure compliance to the provisions of section 509 of the Income-tax Act, 2025, and create a deterrence for non-furnishing of statement or for furnishing inaccurate information in respect of crypto assets in such statement, it is proposed to introduce penalty provision. Penalty of Rs. 200 per day for non-furnishing of statement and Rs. 50,000 for furnishing inaccurate particulars and failure to correct such inaccuracy is proposed to be levied.”

These rules apply to exchanges, wallet providers, and intermediaries. Any platform handling crypto trades must follow them.

In serious cases, where tax is not deposited, and the amount is large, legal action is possible. If the  unpaid tax crosses ₹50 lakh, jail time can also happen. This is a big change. Crypto reporting is starting to look like bank reporting.

For users, this means most trades will be visible. For platforms, it means higher costs and more pressure to avoid mistakes.

This Setup Changes Crypto Trading in India

When you look at everything together into the crypto news, a clear picture forms. India is not banning crypto. It is also not promoting it. Instead, it surrounds it with rules.

People can still trade. They can still hold coins. But every step is taxed, recorded, and checked. This affects different users in different ways.

Small traders feel the pressure first. For them, paperwork and taxes often feel heavier than profits. Large traders and institutions manage better. They already have accountants and systems in place.

Exchanges also have to adjust. Some may raise fees while others may limit services.

All will spend more on compliance. At the same time, the government keeps pushing the digital rupee. This shows where long-term attention is going. Private crypto is allowed, but it is not the priority.

So for now, India is choosing control over expansion. The key crypto news here is that trading and investing are legal.

But it comes with tighter rules. If you trade in India, you need proper records, correct filings, and patience. The system is becoming stricter year by year.